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Business Reporter
WORLD Bank appendage, International Finance Corporation, has for the first time in over a decade begun formal engagement with Government, to find ways of supporting the private sector.

An IFC mission team, which was last active in the country in 2001 jetted into Harare on an exploratory visit that has already seen it holding meetings with Finance Minister Patrick Chinamasa and some private sector business leaders.

Minister Chinamasa said while Zimbabwe is not in good stead to receive financial support from the World Bank due to arrears, nothing should stop the IFC from supporting the private sector.

He said while the country should not hold high hopes for immediate financial support from the World Bank’s private sector unit, its visit marked the first steps towards full re-engagement.

“IFC is responsible for supporting the private sector; they do not support Governments, but private sector. The last such investment they made in Zimbabwe was in 2001,” the minister said.

He said the IFC mission team was in the country on an exploratory visit to learn about circumstances in the country and study the business environment, which by nature is a process.

“They are here for the first time (since 2001) to learn and understand our circumstances. We must understand this is a long process, but it’s a small step towards full engagement,” he said.

Minister Chinamasa said it was important that the private sector received financial support to grow, which would enable to make more money for increased tax revenue inflows to the Government.

“My request to them is our industry requires rehabilitation, so I said see if you can support them in that endeavour. We also need capacity (building) in the informal sector,” the finance minister said.

In 2014, IFC invested more than $22 billion, including about $5 billion mobilised from other investors, helping businesses innovate, build internationally competitive industrial sectors, and create good jobs

The IFC mission to Zimbabwe will meet private sector representatives and also explore ways in which the World Bank division can support SMEs and horn local entrepreneurs.

The team, part of which has also been working with Government through the World Bank to improve the local business environment, pledged its willingness to work towards rebuilding relations.

Head of the IFC mission to Zimbabwe Mr Cheikh Oumar said all investors, domestic or international, required financial resources to deploy when exploring investment opportunities.

He said their focus was primarily to support private sector with financial resources and also help the Government on issues that affect the private sector, which they are looking to do in Zimbabwe.

“We will continue to work with this country to ensure that we provide support to the private sector,” he said. He hailed efforts by the minister to re-engage the World Bank saying there was progress. “This sends a good signal that perhaps we will resolve many issues,” Mr Oumar said.

He said the IFC would look at the possibility of providing support in the financial services sector, infrastructure (water, transport, logistics, power and natural resources, agri-business and manufacturing.

“These are the three major sectors that we tend to look at in our investments across the world,” he said. The IFC seeks to support sectors where the development impact can be felt most.

Johannesburg based IFC senior manager responsible for eight countries in the region, including Zimbabwe, Mr Saleem Karimjee, said this visit was the first step of their exploratory work.

Mr Karimjee said after Minister Chinamasa asked for financial support to private sector and capacity building in the informal sector, they had put a programme in that regard for the agriculture sector.

The IFC provided a record amount of financing for private sector development in the world’s poorest countries in 2014, nearly $8,5 billion in total, including funds mobilised from other investors.